An investment is made for $1,000, split 10% from the Sponsor and 90% from the Investor. There is a 9% non-compounded, cumulative Annual Preferred Return, but it is based only on the Investor’s investment, and is paid only to the Investor. The property is held for 4 years with an annual non-escalating cash flow of $100 in Year 1 through Year 3. In Year 4, net cash flow of $80 is collected. The asset is sold in Year 5 prior to the collection of any operating cash flows. The sale generates net sales proceeds of $2,000. What are the Residual Cash Flows available for Payment Types B and C in Year 5?

Real Estate Financial Modeling / Questions / An investment is made for $1,000, split 10% from the Sponsor and 90% from the Investor. There is a 9% non-compounded, cumulative Annual Preferred Return, but it is based only on the Investor’s investment, and is paid only to the Investor. The property is held for 4 years with an annual non-escalating cash flow of $100 in Year 1 through Year 3. In Year 4, net cash flow of $80 is collected. The asset is sold in Year 5 prior to the collection of any operating cash flows. The sale generates net sales proceeds of $2,000. What are the Residual Cash Flows available for Payment Types B and C in Year 5?

Jul 03